Wednesday March 4, 2015 Search
Weather | Athens
20o C
11o C
Survival Guide
Greek Edition
No leeway for Athens till fall

 Gov’t must rush to implement 12 prior actions in the coming weeks and has no wiggle room for tax cuts

By Prokopis Hatzinikolaou

The election result, albeit adverse, has not led to the destabilization of the government, but Athens has very little room for maneuvering, at least regarding any unilateral measures up to November, when the decisions on its debt will be made. In the meantime it will have to implement all the prior actions required by the revised agreement with its creditors.

“The political clock in Greece will restart in November,” noted a European Union official, stressing that the government should not give in to any urges to backtrack on its obligations to implement reforms or achieve its fiscal targets due to the election result. If it does, it risks missing the chance for a definitive solution that the eurozone will try to grant Greece to lighten its debt, not to mention the financial, political and technical support for the necessary reforms.

Pre-election pledges will apparently remain tucked away for a long time, unless the Finance Ministry finds a way to reduce taxes without putting the fiscal balance at risk. Even the slightest relaxation of the policies to meet the program’s targets must not only come with offsetting measures, but should also have the creditors’ approval.

The ministry will need to move ahead immediately with the implementation of 12 prior actions required for the disbursement of bailout installments adding up to 2 billion euros. This means that as soon as the Parliament reopens, a series of bills and amendments must be tabled and voted through for the next tranche of 1 billion euros to be disbursed in June, with another one of the same amount due in July.

Prior actions include the determination of the second batch of charges to be abolished, the merger of auxiliary social security funds, the reduction of pharmacists’ profit margins and the breakup of Public Power Corporation (PPC) so that its privatization can proceed. The technical experts from the country’s creditors will arrive in Athens next month, while the proper assessment of Greece’s progress will not begin before the end of August. , Monday May 26, 2014 (22:47)  
Four-star hotels more profitable than five-star units
All personal finance data to be studied
Fitch in new downgrade warning
Flambouraris: Bank boards have been told to quit
Greek-Turkish diplomacy set to resume after Ankara ´mistake´
Talks between Greek and Turkish diplomats are expected to resume soon with a focus on easing tensions in the Aegean after Ankara said it had mistakenly issued a notice to reserve a large chu...
Laws separating drug dealers from users ‘not applied’
Legal provisions distinguishing major drug dealers from users are not being properly applied, according to the Therapy Center for Dependent Individuals (KETHEA), which said recovering addict...
Inside News
Marinakis fines Olympiakos players
Olympiakos president Evangelos Marinakis on Monday fined the team 500,000 euros for disappointing performances and called on them to make a «sacrifice» to win trophies or leave. "Olympiakos ...
Olympiakos´s Karembeu confident UEFA on top of racism
Olympiakos strategic advisor Christian Karembeu expressed his confidence on Tuesday that UEFA are getting to grips with racism in soccer after suffering abuse during the recent Greek derby a...
Inside Sports
Greece and the four month window of opportunity
As the dust begins to settle after the Eurogroup agreement extending the loan facility to Greece by four months, it is a good moment to have a look at where we should go from here. Much has ...
The Greek tax drama
Numbers alone can never interpret reality, not even a strictly financial one. Besides, the art of creative accounting has a number of fans in this country, many more, for the time being, tha...
Inside Comment
1. Four-star hotels more profitable than five-star units
2. All personal finance data to be studied
3. Fitch in new downgrade warning
4. Flambouraris: Bank boards have been told to quit
5. Talks with Brussels on reforms for cash
6. Greek-Turkish diplomacy set to resume after Ankara ´mistake´
more news
This Week
1. The Greek tax drama
2. Varoufakis to make six reform proposals at Monday's Eurogroup
3. Draghi’s QE moves to starting line as economic outlook brightens
4. Greece approved as recipient of EBRD funding through 2020
5. Convicted Conspiracy of the Cells Fire member to face magistrate
6. Investor survey shows 38 pct chance of eurozone break-up in 12 months
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. A fierce battle looms
3. SYRIZA feeling the pain
4. The Greek tax drama
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
Advertiser Link
   Find us ...
  ... on
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.